CORRECTED-Element Solutions Q4 sales rise 8%, beat expectations

Overview

• Specialty chemicals firm's Q4 net sales rose 8%, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company completed acquisitions to expand footprint in high-value supply chains

Outlook

• Element Solutions expects 2026 adjusted EBITDA between $650 mln and $670 mln

• Company anticipates 2026 adjusted EPS growth in the mid to high teens

• Element Solutions expects Q1 2026 adjusted EBITDA between $140 mln and $155 mln

Result Drivers

• ELECTRONICS DEMAND - Demand from datacenter infrastructure and high-performance computing markets drove double-digit organic growth in Electronics segment

• DIVESTITURE IMPACT - Sale of MacDermid Graphics Solutions negatively impacted Specialties segment, but organic growth achieved

• ACQUISITIONS - Recent acquisitions expanded footprint in high-value supply chains and improved offerings in growth categories

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the specialty chemicals peer group is "buy"

• Wall Street's median 12-month price target for Element Solutions Inc is $33.50, about 3.5% above its February 13 closing price of $32.36

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nBw9QGVxCa

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